High-Density Transit Zones: California Authorizes Transit-Oriented Development with Senate Bill 79

On October 10, 2025, Governor Gavin Newsom signed into law Senate Bill 79 (“SB 79”), on what was bill author Senator Scott Wiener’s third attempt at passing such legislation. The Legislature intended to both accommodate additional residential density near transit corridors, and increase ridership on transit routes, which have struggled to recover from pandemic disruptions. SB 79 also includes provisions that allow transit agencies to develop their own properties meeting certain criteria, exempting them from any applicable local zoning. The new law balances development opponents’ demands for local control by allowing local governments to develop their own ordinances that authorize transit-oriented development (“TOD”).

Beginning on July 1, 2026 in incorporated cities, or after the 7^th regional housing needs cycle in unincorporated county lands, SB 79 broadly “upzones” certain parcels around high quality transit in counties meeting certain transit criteria. SB 79 will only apply in “urban transit counties,” defined to mean “county with more than 15 passenger rail stations.” (Gov. Code, § 65912.156(p), (q).) Consequently, as of today SB 79 will only apply in Alameda, Contra Costa, Los Angeles, Orange, Sacramento, San Bernardino, Santa Clara, San Diego, San Francisco, and San Mateo Counties.

Increased Density Around High-Quality Transit

SB 79 provides benefits for development near two tiers of TOD stops. The law differentiates these tiers based on the speed and frequency of the transit lines.

Tier 1 TOD Stop: a stop served by heavy rail transit or very high frequency commuter rail (72 trains per day in both directions).

• Examples (including but not limited to): BART; LA Metro (heavy rail) B and D Lines; some Metrolink (SoCal) and Caltrain (NorCal) stops depending on train frequency.

Tier 2 TOD Stop: a stop served by light rail, high-frequency commuter rail (48 trains per day in both directions), or by bus service meeting the standards of Public Resources Code section 21080.2.

• Examples (including but not limited to):SF Muni (rail); LA Metro (light rail) A, C, E, K Lines; LA Metro (bus rapid transit) G and J Lines; SacRT; some Metrolink and Caltrain stops depending on train frequency.

Eligibility Criteria

Eligible sites have a zoning designation of residential, mixed-use, or commercial and not contain more than two units of housing or previously contain more than two units of rent-controlled units. Projects near an airport must meet additional requirements.

Eligible projects must provide at least five dwelling units at a minimum density of 30 units or acre or the minimum density required under the applicable zoning. The average total area of floor space for the proposed units cannot exceed 1,750 net habitable square feet. The Project must meet affordability criteria, except for projects of 10 or less units (which are exempt) of at least: at least 7% of total units dedicated to extremely low-income households; 10% of total dedicated to very low-income households; 13% of total dedicated to lower-income households, or the local inclusionary requirement if it mandates higher percentage of affordability or deeper level of affordability.

Buildings over 85 feet in height must be subject to specified labor standards, which are only applicable to each building over 85 feet in height. Projects that meet at least 60 units/acre are eligible for additional DBL concessions.

Streamlining and Ministerial Approval

An SB 79 project is eligible for streamlined ministerial approval pursuant to Section 65913.4. A streamlined project will be exempt from Section 65913.4(a)(4)(A) requirements [streamlining exemption for localities that have meet their RHNA requirement] and (a)(5) requirements [consistency with objective zoning standards, subdivision standards, etc.]. Streamlining and ministerial approval will wholly exempt a project from CEQA review.

However, to be eligible for streamlining/ministerial approval, the project must comply with the Section 65913.4 (i.e. SB 35) affordability and labor requirements. Otherwise, the applicant can elect to go through the locality’s standard development approval process without providing affordable units.

Conclusion

SB 79 will allow a significant increase in residential density around transit stops in predominantly urban counties across California. Because SB 79 requires inclusion of affordable units, projects may also be eligible for the benefits of the State Density Bonus Law (Government Code section 65915 et seq.) which allows for increased density and waivers of development standards, as well as incentives or concessions. The 30 unit-per-acre minimum density requirement (on sites that do not have a residential zoning designation) may, however limit the law’s applicability especially for some smaller projects.

SB 79 also authorizes jurisdictions to develop their own ordinances for implementation of SB 79. In such an ordinance, a jurisdiction may exempt areas within ½ mile of a TOD stop if it makes findings that no walking path of less than one mile exists connecting the exempt areas from the TOD stop or the jurisdiction has at least 15 TOD stops and designates the exempt area as an “industrial employment hub.” The new law also gives municipalities the flexibility of developing a “TOD Alternative Plan.”

Upon effect in July 2026, SB 79 will provide critical density increases around transit hubs. One study estimates that the new law will accommodate nearly 1.5 million new homes in the City of LA alone, which would double the city’s housing stock. Determining a project’s eligibility for SB 79 requires a detailed evaluation of the project, the project site, and applicable local standards (e.g. local inclusionary housing requirements). If you have any questions about SB 79 or how it may apply to your project, please reach out to Braeden Mansouri or Alicia Guerra.

[1] City must have a population of at least 35,000.

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